Contact Information: Contact: FormFactor, Inc. Michael Magaro Investor Relations (925) 290-4949
FormFactor, Inc. Revises First Quarter Guidance and Announces Cost Reduction Plan
| Source: FormFactor
LIVERMORE, CA--(Marketwire - April 8, 2008) - FormFactor, Inc. (NASDAQ : FORM ) today revised
its guidance for the first fiscal quarter, ended March 29, 2008. Based on
a preliminary review, the company now expects first quarter revenue to be
in the range of $65 million to $66 million, compared to its previous
guidance of $70 to $80 million. The company expects its non-GAAP operating
margin will be worse than the 6% to 19% previously forecast and that its
GAAP loss per share will be greater than its previous forecast of $0.15 to
$0.25 per share. First quarter results will reflect restructuring charges
associated with the company's ongoing cost reduction plan. Bookings for
the first fiscal quarter were approximately $66 million.
The lower than expected revenue is due primarily to the deterioration of
the DRAM market throughout the first quarter. Depressed memory device
prices are causing customers to delay test capacity expansions and
technology transitions, and to take additional actions to reduce costs, all
of which impact the company's business. The company believes these
conditions that impact revenue will continue to exist at least through the
first half of 2008. The guidance contained in this release is based on
preliminary information and is subject to change.
In addition, the company also announced a global cost reduction plan. As
part of the plan the company will reduce its global workforce by about 12%,
with the reductions primarily coming from the company's North America
operations. The company expects to incur $3.5-$4.5 million in charges
related to the plan, which will be recorded in the second quarter of fiscal
2008.
The company plans to release its financial results for its first quarter on
April 29, 2008 and will provide more details on its first quarter
performance at that time.
About FormFactor:
Founded in 1993, FormFactor, Inc. (NASDAQ : FORM ) is the leader in advanced
wafer probe cards, which are used by semiconductor manufacturers to
electrically test integrated circuits, or ICs. The company's wafer sort,
burn-in and device performance testing products move IC testing upstream
from post-packaging to the wafer level, enabling semiconductor
manufacturers to lower their overall production costs, improve yields, and
bring next-generation devices to market. FormFactor is headquartered in
Livermore, California with operations in Europe, Asia and North America.
For more information, visit the company's website at www.formfactor.com.
FormFactor and the FormFactor logo are registered trademarks of FormFactor,
Inc. All other product, trademark, company or service names mentioned
herein are the property of their respective owners.
Forward-Looking Statements
Statements in this press release that are not strictly historical in nature
are forward-looking statements within the meaning of the federal securities
laws, including statements regarding business momentum, demand for our
products and future growth. These forward-looking statements are based on
current information and expectations that are inherently subject to change
and involve a number of risks and uncertainties. Actual events or results
might differ materially from those in any forward-looking statement due to
various factors, including, but not limited to: changes in actual results
for the first quarter as compared to the guidance contained in this
release; changes in the market environment, including DRAM; the demand for
certain semiconductor devices; the company's ability to execute its cost
reduction plan, to develop innovative testing technologies, to timely
deliver and qualify new products that meet its customers' testing
requirements and to implement and execute measures for enabling
efficiencies and supporting growth. Additional information concerning
factors that could cause actual events or results to differ materially from
those in any forward-looking statement is contained in the company's Form
10-K for the year ended December 29, 2007, filed with the Securities and
Exchange Commission ("SEC"), and subsequent SEC filings. Copies of the
company's SEC filings are available at
http://investors.formfactor.com/edgar.cfm. The company assumes no
obligation to update the information in this press release, to revise any
forward-looking statements or to update the reasons actual results could
differ materially from those anticipated in forward-looking statements.